ETHICAL COMPLIANCE REPORT

CESC

CESC Logo

Sector:

Utilities

Industry:

Utilities - Regulated Electric

Overall Compliance

non-compliant

non-compliant

Revenue Ratio

The sum of revenue from questionable and non-compliant sources should not exceed 3% of the total revenue. This ensures that the company has tolerable reliance on unethical sources of revenue.

1%

Non Compliant
Questionable
Compliant

CALCULATION

Revenue Ratio:1627900000.00155442600000.00×100=1.00%\textbf{Revenue Ratio:} \\[12pt] \dfrac{1627900000.00}{155442600000.00} \times 100 = 1.00\%

FORMULA

Revenue Ratio:Unethical SegmentsTotal Revenue×100  ≤  3%\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%
SegmentComplianceValue
interest Income
non-compliant
non-compliant		₹162.79
Other operating revenue
compliant
compliant		₹371.10
Sale of Electricity
compliant
compliant		₹14,922.11
other income
compliant
compliant		₹88.26

Debt Ratio

The interest bearing debt should not exceed 31% of the total assets. This is to ensure that the company is not paying a significant portion of its assets as interest.

38.6%

CALCULATION

Debt Ratio:143630800000.00371680000000.00×100=38.60%\textbf{Debt Ratio:} \\[12pt] \dfrac{143630800000.00}{371680000000.00} \times 100 = 38.60\%

FORMULA

Debt Ratio:Interest Bearing DebtTotal Assets×100  ≤  30%\textbf{Debt Ratio:} \\[12pt] \dfrac{\text{Interest Bearing Debt}}{\text{Total Assets}} \times 100 \; \leq \; 30\%

Liquidity Ratio

The total liquid assets should not exceed 90% of the total assets. This is to ensure that trading this stock does not become similar to trading a currency.

7.3%

CALCULATION

Liquidity Ratio:27113500000.00371680000000.00×100=7.30%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{27113500000.00}{371680000000.00} \times 100 = 7.30\%

FORMULA

Liquidity Ratio:Total Liquid AssetsTotal Assets×100  ≤  90%\textbf{Liquidity Ratio:} \\[12pt] \dfrac{\text{Total Liquid Assets}}{\text{Total Assets}} \times 100 \; \leq \; 90\%